Dewan Housing Finance Corporation Ltd. share price target

DHFL reported a strong 32.6% growth in PAT at 245 cr for 3QFY17, exceeding our expectations. Strong momentum in loan growth, easing cost of funds with improving NIM and lower credit cost resulted in better than expected results. DHFL's performance in the first theree quarters of FY17 has been satisfactory and we don't see any negative d..

Dewan Housing Finance Corporation (DHFL) promoted by the Wadhwan group, commenced operations in 1984. DHFL with a total AUM of INR 783bn is the 3rd largest housing finance company with a market share of nearly~ 4% and operates through a network spread across in 353 locations. It is the only Housing Finance Company with focus on LMI customer segment. Distribution footprint is primarily spread across Tier II / III cities and outside the municipal limits of...

Dewan Housing Finance Corporation (DHFL) promoted by the Wadhwan group, commenced operations in 1984. DHFL with a total AUM of INR 752bn is the 3rd largest housing finance company with a market share of nearly~ 4% and operates through a network spread across in 353 locations. It is the only Housing Finance Company with focus on LMI customer segment. Distribution footprint is primarily spread across Tier II / III cities and outside the municipal limits of...

Triggers in place to drive up the return ratios Dewan Housing (DEWH) is one of the largest pan-India housing finance companies focusing on the lower and middle income (LMI) segment. With 353 branches/centers across the country, it largely caters to the self-employed segment, which constitutes 40% of total AUM. DEWH's core competence lies in its ability to conduct credit appraisals for customers in the LMI and self-employed segments. We expect 20%/23% AUM/PAT CAGR over FY16-19 and 1.4%/19% RoA/RoE by FY19. At P/B of 1.1x FY18E, we believe DEWH is undervalued,...

Dewan Housing Finance Corporation (DHFL) promoted by the Wadhwan group, commenced operations in 1984. DHFL with a total AUM of INR 720bn is the 3rd largest housing finance company with a market share of nearly~ 4% and operates through a network spread across in 353 locations. It is the only Housing Finance Company with focus on LMI customer segment. Distribution footprint is primarily spread across Tier II / III cities and outside the municipal limits of...

Dewan Housing Finance's (DEWH) 1QFY17 PAT grew 16.2% YoY to INR2b (inline). Reduction in cost to income ratio by 190bp YoY to 28.1% - a 33 quarter low. AUM and disbursements growth remains healthy at +20/26% YoY. Reduction in cost of funds coupled with shift in the portfolio towards high yielding segment helped DEWH to maintain margins at 2.9% despite high competitive intensity in core home loan segment. Cost of funds declined 40bp+ YoY to ~9.5% Asset quality remained broadly stable, with GNPLs of 98bp v/s 93bp in 1QFY16. Coverage ratio remains healthy at ~100%....

For 4QFY2016, Dewan Housing Finance Ltd (DHFL) reported a 17% growth in PAT to Rs190cr, which is lower than our expectation. The miss was on account of lower-thanexpected loan growth; however, on other operating parameters the company's performance remained satisfactory. Loan growth remained decent: DHFL reported a 17.3% growth in loans d..

Dewan Housing Finance Corporation (DHFL) promoted by the Wadhwan group, commenced operations in 1984. DHFL with a total AUM of INR 685bn is the 3rd largest housing finance company with a market share of nearly~ 4% and operates through a network of ~450+ outlets. It is the only Housing Finance Company with focus on LMI customer segment. Distribution footprint is primarily spread across Tier II / III cities and outside the municipal limits of the Metros with...

Dewan Housing Finance's (DEWH) PAT grew 16.9% YoY to INR1.9b in 4QFY16. While the net income was in line with our estimate, though higher expenses (led by advertisement and CSR) led to a 6% PAT miss. Healthy AUM growth of 22% YoY...

Dewan Housing Finance Corporation Ltd (DHFL) is the third largest housing finance company in India with a market share of ~4%. With a focus on the low and medium income (LMI) consumer segment, the company has increased its presence in tier-II & III cities where the growth opportunity is immense. With strong asset quality and healthy r..